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Why should we "do the algebra" of the IS/RT/PC?


Professional ecoomists in central banks and the private sector typically discuss their economic outlooks in both qualitative and quantiative terms.


Qualitative example: "We expect output to drop modestly." 


Quantiatative example: "We expect the output gap to drop by 0.5% of potential output."


As a business person, you will want to understand the such assessments. We think you'd want to know about both.


This page is designed to give you a "peek into the algebra" of the short-run IS/RT/PC model. Both videos and spreadsheets should help you understand "where did we get those numbers!"

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